ARVIND MILLS

Company profile
Arvind Mills, the flagship company of the Lalbhai Group, is one of India's leading composite manufacturer of textile.
It manufactures a range of cotton shirting, denim, knits and bottom weights (Khakis) fabrics. It is India's largest denim manufacturer apart from being world s fourth-largest producer and exporter of denim.

Textile industry
India Textile Industry is one of the leading textile industries in the world. India textile industry largely depends upon the textile manufacturing and export. India earns about 27% of its total foreign exchange through textile exports. The textile industry of India also contributes nearly 14% of the total industrial production of the country. It also contributes around 3% to the GDP of the country. India textile industry is also the largest in the country in terms of employment generation. But also opens up scopes for the other ancillary sectors. The current domestic market of textile in India is expected to be increased to US$ 60 billion by 2012 from the current US$ 34.6 billion.

Indian textile industry can be divided into several segments, some of which can be listed as below: Cotton Textiles Silk Textiles Woolen Textiles Readymade Garments Hand-crafted Textiles Jute and Coir

    

Strengths

Large pool of skilled and cheap work force Entrepreneurial skills Efficient multi-fiber raw material manufacturing capacity Large domestic market Enormous export potential Very low import content Flexible textile manufacturing systems Vast textile production capacity

Weaknesses

Imports of cheap textiles from other Asian neighbors Use of outdated manufacturing technology Poor supply chain management Huge unorganized and decentralized sector High production cost.

Arvind brands
Subsidiary of Arvind Mills, a major garment manufacturing player Caters to the domestic market and is also involved in exports It has 3 large manufacturing units, 2 warehouses and 400 sales outlets across the country The company has its owned brands and licenses from reputed international brands like Lee, Wrangler, Gantt, Arrow and Tommy Hilfiger for selling in the Indian market It distributes its products through Multi-Brand Outlets (MBO s), organized retailers and Exclusive Brand Outlets(EBO s The company manages various brands like Flying Machine, Newport and Ruf & Tuf in denim trousers and Excalibur in shirts

Business strategy
Business Strategy Excalibur 'the company s own brand is revamped as a lifestyle brand Expanding the product portfolio to include knits, jackets, t-shirts, blazers and suits Planning to set up 100 Excalibur outlets Recently entered into a 40-60 Joint Venture with VF Corporation, a US-based lifestyle apparel maker and owner of 50 brands, to market its products in India VF Corporation owns brands such as Lee, Vanity fair, Wrangler, Nautica, JanSport and Kipling This tie-up has also made the company an exclusive franchisee of Gantt It s a distributor for the brand across India, Sri Lanka and Bangladesh VF Arvind brands Pvt. Ltd. Plans to open 13 Nautica Stores Arvind Mills plans to open around 100 Megamart stores across 100 cities thereby enhancing their existing network 54 outlets in 16 cities This would increase its presence in Tier II cities as well

Aggregate market factors Category factors Environmental factors Number and nature of different brands marketed in the product class sold by a firm helps in Increase shelf presence and retailers dependence Attract consumers seeking variety Increase internal competition

competitors

Raymond-park avenue, zapp, London notting hill, parx, monzoni. Levis- Sykes,501,Red Tab and Red Loop. Bombay dyeing Provogue Madura garments- Allen Solly, Van heusan, Peter England, Louis Philippe. Zodiac